The Section 6511(c)(2) refund look-back reaches back to the first assessment-extension agreement, not just the most recent one

Plain-English summary

This is an internal Chief Counsel email answering a procedural question about refund claims. When a taxpayer and the IRS agree to extend the time to assess tax (a Section 6501(c)(4) agreement), Section 6511(c)(1) also extends the taxpayer's deadline to file a refund claim, and Section 6511(c)(2) then caps how much can be refunded by a "look-back" tied to the date the agreement was executed. The question was: if there were several successive extension agreements, does the look-back reach back to the first one or only the most recent? Chief Counsel advised that it reaches back to the first agreement to extend the assessment period, citing Estate of Wheeler v. Commissioner, T.C. Memo 1979-321. The practical effect is a more taxpayer-favorable measuring date (the earliest agreement), which widens the window of payments eligible for refund. This is advice to IRS personnel, not a ruling for any taxpayer.

Ruling snapshot

• Question: Under Section 6511(c)(2), does the refund look-back reach back through multiple extension agreements to the first, or only to the immediately preceding one?
• Outcome: advice given (look-back reaches back to the first extension agreement)
• Key authorities: IRC §§ 6511(c)(1), 6511(c)(2), 6511(b)(2), 6501(c)(4); Estate of Wheeler v. Commissioner, T.C. Memo 1979-321

Full text (IRS public release)

ID: CCA_2022033113592950 [Third Party Communication:

UILC: 6511.00-00, 6511.03-06 Date of Communication: Month DD, YYYY]

Number: 202216015
Release Date: 4/22/2022
From: ------------------------
Sent: Thursday, March 31, 2022 1:59:29 PM
To: ------------------
Cc: ----------------------
Bcc:
Subject: RE: TSS Request - Application of Sec. 6511(c)(2) Look-Back Rule

Issue: Whether the look-back rule under Sec. 6511(c)(2) applies on multiple extensions
until it reaches the very first extension or whether it applies only to the previous
immediate extension.

Response: Under Section 6511(c)(2), the look back provision applies on multiple
extensions by reaching back to the first extension. If an agreement to extend the period
of assessment is reached under 6501(c)(4), then 6511(c)(1) provides the taxpayer’s
time to file a claim for refund is extended to 6 months after the agreed upon assessment
period ends. The 6511(c)(2) look back provision then limits the amount the taxpayer can
claim in a refund to (1) payments made between the time the agreement was executed
and the filing of the refund claim plus (2) payments that would have been available
under 6511(b)(2) had the claim been filed on the date the agreement was
executed. The reference to the date the agreement was executed is interpreted to
mean the date of the first agreement to extend the assessment period. See Estate of
Wheeler v. Commissioner, T.C. Memo 1979-321 (1979). The “agreement” under
6511(c)(2) thus reaches back to the first agreement.

Best,
Christos

Christos Kapsalis
Office of Chief Counsel, IRS (Procedure & Administration)
CC:PA:02
[email protected]
Cell: 708-921-4190